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Civic Federation report details growing gaps, despite nearly $3 billion in annual investment, as the State prepares to launch the new Department of Early Childhood (IDEC)
CHICAGO — A new report by the Civic Federation details that Illinois’ early childhood system, while supported by nearly $3 billion annually in federal, state, and local funding, continues to struggle with limited access, workforce shortages, rising costs, and deep inequities across geography, race, income, and language status.
The report, Illinois Early Childhood Landscape, provides a comprehensive overview of the State’s early childhood system serving children from birth to age five. It examines demographic trends, funding structures, workforce capacity, program access, family experience, and child outcomes at a pivotal moment as Illinois transitions programs historically spread across multiple agencies into the new Department of Early Childhood (IDEC).
IDEC is scheduled to formally open for business on July 1, 2026, but significant uncertainty remains around its structure, responsibilities, and implementation. The findings in this report establish a comprehensive baseline of current conditions to support transparency, inform decision-making, and ensure strong accountability as IDEC works to strengthen coordination, equity, and outcomes for children and families.
“Illinois took a historic step towards a more equitable and unified early childhood system with the creation of IDEC, but the new Department is not a magical fix,” said Joe Ferguson, President of the Civic Federation. “While Illinois has increased investment in early childhood, this report shows that funding has not kept pace with rising costs or the growing intensity of need. By providing a comprehensive understanding of the structural gaps and challenges, this report provides a starting point from which to hold IDEC accountable and ensure its long-term success.”
The report shows that despite recent funding growth, Illinois’ early childhood system remains unable to meet demand. Licensed providers can serve fewer than one-third of children under age five statewide, with access especially limited for infants and toddlers. Provider capacity has declined sharply over the past decade, driven by persistent workforce shortages and compensation levels that fall well below a living wage. At the same time, longstanding inequities by race, income, geography, language, and disability status continue to shape which families can access high-quality care and early learning opportunities.
Key Findings
- Investment has increased, but remains insufficient: State-administered early childhood funding grew from $1.75 billion in Fiscal Year 2021 to $2.44 billion in Fiscal Year 2025, and total system funding approaches $3 billion annually when federal Head Start dollars are included. However, reimbursement rates remain below the true cost of quality care, limiting provider stability and wage growth.
- Access is constrained across much of Illinois: Licensed providers can serve only 31.7% of children ages zero to five and just 21% of infants and toddlers. Nearly three-quarters of Illinois counties qualify as child care deserts, with the most severe shortages in rural areas.
- Provider and workforce losses continue: Illinois has lost more than 4,300 licensed providers and 38,000 licensed slots over the past decade, reflecting rising operating costs, low reimbursement, and chronic staffing shortages.
- Workforce Instability threatens quality and continuity: The early childhood workforce of more than 80,000 remains chronically underpaid, driving high turnover, classroom closures, and service delays, particularly in infant and toddler care and Early Intervention.
- System fragmentation creates barriers for families: Families must navigate multiple agencies, eligibility rules, and application processes to access child care, preschool, Early Intervention, and home visiting services. Housing instability and frequent family mobility further disrupt continuity of care.
- Equality gaps remain persistent: Disparities in access, quality, and child outcomes continue across race, income, geography, language, and disability status. Fewer than one-third of children meet kindergarten readiness benchmarks across all developmental domains.
The Illinois Early Childhood Landscape report establishes a comprehensive baseline as Illinois transitions to the new Department of Early Childhood. While recent investments and governance reforms represent meaningful progress, the findings underscore that significant structural challenges remain. Addressing access shortages, workforce instability, and persistent inequities will be critical to ensuring the State’s early childhood system can deliver stable, high-quality services for children and families across Illinois.
The full Illinois Early Childhood Landscape is available here.
An overview of the transition to the new Department of Early Childhood can be found here.